Position refers to the amount of funds an investor owns or borrows.

Position is a term commonly used in the financial industry, and is often used in finance, securities, stocks, and futures transactions. For example, when opening a futures account and opening a position, the position held after buying a futures contract is called a long position, or long for short; the position held after selling a futures contract is called a short position, or short for short.

The difference between the open long contract and the open short contract of a commodity is called the net position. This is only done in futures trading, but not in spot trading.

In foreign currency trading, "establishing a position" means opening. Opening is also called exposure, which is the act of buying one currency and selling another currency at the same time. After the opening, one currency is long (long) and the other currency is short (short).

Selecting the appropriate exchange rate level and timing to establish a position are the prerequisites for profitability. If you enter the market at a good time, you have a greater chance of profit; on the contrary, if you enter the market at a bad time, you are prone to losses. Net position refers to the trading difference between one currency acquired after opening and another currency.

Extended information:

Notes on using positions

1. Don’t make the position too large

When establishing a position, try not to make it too large. , larger positions are more dangerous when trading, and are not conducive to rational management operations. Traders can also choose to build positions in batches, or investors can also use the pyramid position method to build positions. The amount of each position is larger than The last time was small, don't add positions based on losses.

2. Open a position with the trend

Traders can open a position when the market is going against the trend, but try to avoid opening a position when the market goes against the trend. The market risk at this time is relatively high. Traders should add orders carefully, or even not add orders at all, so as to reduce possible losses.

3. Close positions in a timely manner

During the transaction process, you must pay attention to your position in a timely manner. If you encounter abnormal market changes or predict that the market will turn around based on technical indicators, you must Close positions promptly.

Baidu Encyclopedia-Position